Reference no: EM131781558

Question - Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:

Selling price per unit         $35

Manufacturing cost            $3,700 per month plus $16.00 per unit

Administrative expense     $1,850 per month plus $2.00 per unit

Sales commissions            16.00% of sales

Advertising expense          $7,000 per month

If Buffo plans to produce and sell 3,500 units next month, the expected contribution margin would be:

a) $39,900

b) $105,650

c) $82,600

d) $35,900